Tiny homes developer asks court for exemption from rules governing most N.B. landlords

A charity that rents close to 100 tiny homes to people who struggle with chronic homelessness in Fredericton is arguing it shouldn’t be subject to the typical rules governing landlords when it comes to issues such as evicting tenants.

12 Neighbours Community Inc. has applied for judicial review of the province’s decision to put it under the jurisdiction of the Tenant and Landlord Relations Office.

That office – a branch of Housing New Brunswick – is responsible for enforcing the Residential Tenancies Act.

However, 12 Neighbours argues it is not subject to the rules laid out in that legislation due to a clause that exempts projects backed or administered by the government.

In its application filed July 4 in the Fredericton Court of King's Bench, 12 Neighbours argued that since its 96 units were developed and financed under the National Housing Act and because the organization administers the housing on behalf of the province, it wouldn't fall under the jurisdiction of the Tenant and Landlord Relations Office.

But Housing New Brunswick argues 12 Neighbours is subject to the Residential Tenancies Act, as are other non-profit housing providers with similar relationships to government.

"Although the 12 Neighbours community is set up differently than other low income housing locations, the agreements with [Canada Mortgage and Housing Corporation] and the New Brunswick Housing Corporation are the same type of agreements that are commonly found from landlords who offer low income housing, and over which our office has consistently found the [Residential Tenancies] Act applies to," said Paul Steeves, deputy chief residential tenancies officer, in an affidavit filed Nov. 7.

A hearing on the application had been scheduled for Tuesday, but it was adjourned for reasons unknown to staff at the Burton courthouse.

CBC News emailed and called 12 Neighbours founder Marcel Lebrun, as well as lawyers for the organization, for comment about why the judicial review was being sought, but did not receive a response.

In an email, Housing New Brunswick spokesperson Adam Bowie said no one from the Crown corporation would comment as it is an ongoing legal matter.

12 Neighbours was established in 2022, starting out with a handful of tiny homes in what was a wooded lot off of Two Nations Crossing on Fredericton's north side.

The non-profit offers supportive long-term housing for individuals who struggle with chronic homelessness and substance use disorder.

In an affidavit, Lebrun said he contacted the Tenant and Landlord Relations Office seeking clarity on whether the office had jurisdiction over 12 Neighbours, as well as the kind of documentation needed to properly evict a tenant.

"For example, we have a current case where we applied for eviction, where we have an individual who has been charged with battery on another community member," Lebrun wrote in an email to Tenant and Landlord Relations Office staff in September 2023.